We recently published a list 12 best FMCG shares to buy according to billionaires. In this article we will look at where Philip Morris International Inc. (NYSE: PM) stands against other best FMCG shares to buy according to billionaires.
Historically, the industry of consumer -packaged Goods (CPG) performed most other industries, mainly because of the high growth and consistent margins, says McKinsey. Since 2012, however, many factors, such as inflation, market saturation, important competition, fluctuating consumer flavors and behavior, has resulted in a fragmented consumer base in growth challenges. Given increased interest rates and increased industry multiples in recent years, there has been less dealer activity, says the company. In addition, a series of leading CPG companies continue to follow a more measured approach, emphasize medium -sized offers and strive for cost and growth syngies.
The wider downward trend of rates, along with strong, cash-rich balances (and an increased ability to take more affordable debts) of CPG companies can lead to a higher activity in the near future for the sector, says McKinsey. The company expects a mix of 3 types of transactions, ie signature, sector-shaped deals, considerable horizontal deals that enable a larger subcategory consolidation, and targeted spin-offs of brands and business units that have limited synergies or growth resources with their current owner.
Although the consumer sector remains wide, much of the analysis was aimed at the F&B sector. McKinsey expects to see an increased activity in CPG sectors, mainly in the personal care and beauty sectors. However, it also expects the F&B sector to continue to conquer a considerable part of deals.
Also read: 7 best shares to buy for long-term and 8 cheap Jim Cramer shares to invest.
Deloitte is of the opinion that in 2025 the companies of the consumer products will probably tackle the product portfolio and mix an attempt to seduce consumers and invest in the broad set of the possibilities for generating question. In addition, companies are expected to develop transformative efficiency, so that savings can be produced, which can help to finance such investments. Deloitte points out that increasing the device volume sold remains an important lever that can support in stimulating profitable growth. In particular, some companies of consumer products, especially the profitable growers, remain aimed at innovation to re -involve consumers. Deloitte also emphasized that good performing companies seem to take on a clear picture of their portfolios, and they continue to dispose of and acquire if necessary.
Our methodology
To buy the 12 best FMCG shares to buy according to billionaires, we have used an exclusive database of a screener and insider Monkey of billionaire stock possession to the companies that focus on the wider FMCG space. For the shares with the same number of billionaire companies, we used the number of investors of hedge funds as a secondary metric to rank the shares, from the first quarter of 2024. We also mentioned the hedge fund sensiments around each shares, from the quarter of 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is Philip Morris International Inc. (PM) The best FMCG shares to buy according to billionaires?
A man who exudes smoke from a cigarette indicating the use of tobacco products.
Number of billionaire -investors: 22
Number of holders of hedge funds: 102
Philip Morris International Inc. (NYSE: PM) Works as a tobacco company. Bonnie Herzog, an analyst of Goldman Sachs, repeated a ‘buy’ rating on the shares of the company. The corresponding price target in particular was $ 165.00. The rating is supported by factors that demonstrate the promising future. According to the analyst, the leadership of Philip Morris International Inc. (NYSE: PM) Showing a healthy trust in his ability to witness sustainable growth and offer shareholders’ efficiency, thanks to its dedication to a smoke -free transformation. The analyst added that the transition is helped by a strong strategy for multiple categories that focuses on recording a significant share in the growing global nicotine market.
Elsewhere, Eric Serotta from Morgan Stanley achieved a ‘buy’ rating on the shares of the company with a price objective of $ 156.00. The rating is supported by the robust positioning of Philip Morris International Inc. (NYSE: PM) In the wider smoke -free product market. According to the analyst, the company remains optimistic about the continuing growth of the smoke -free portfolio, which consists of products such as IQOs and Zyn. With regard to the non -smoking activities (SFB), Q4 2024 surpasses shipments of HTU and oral smoke -free products for the first time 40 billion units, which means that the smoke -free activities of Philip Morris International Inc. (NYSE: PM) were fueled to superior performance, with a net income of the entire year, with an annual net income rise 14.2% and Gross profit.
Broyhill Asset Management, an investment advisor, has released an investor letter from Q3 2024. This is what the fund said:
“Shares of Philip Morris International Inc. (NYSE: PM) Won 21% in Q3. Philip Morris was by far the largest contribution for the quarter. Our core thesis focuses on the shift in company mix of flammable cigarettes to reduced risk products, as well as the re -entry of the company to the American market with the acquisition of the Swedish competition. This year his has become extremely popular. So much so that the company can hardly keep it in stock, even if it expands production. We recently discussed how the youth use of these products, a common criticism of the company, remains less than 2%, even if the general popularity floats a higher volume. “
Generally, PM rank 1st On our list of best FMCG shares to buy according to billionaires. Although we recognize the potential of PM as an investment, our conviction is that some deeply undervalued AI shares have a greater promise to deliver a higher return, and to do this within a shorter time frame. If you are looking for a deeply undervalued AI shares that are promising than PM, but which acts in less than 5 times, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider monkey.
